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You can find the current article at its original source at https://www.theguardian.com/business/2018/nov/07/new-blow-marks-spencer-clothing-food-sales-dip-uk-high-street
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| Marks & Spencer boss: business overhaul will leave 'no stone unturned' | |
| (about 11 hours later) | |
| Marks & Spencer boss Steve Rowe said it was leaving “no stone unturned” as a new management line-up overhauls “every aspect” of its struggling clothing and food stores in a bid to appeal to younger shoppers. | Marks & Spencer boss Steve Rowe said it was leaving “no stone unturned” as a new management line-up overhauls “every aspect” of its struggling clothing and food stores in a bid to appeal to younger shoppers. |
| After more than a decade of failed attempts to revive the high street giant, Rowe gave a stark assessment of the chain’s problems as it recorded a small increase in first-half profits. Its clothing arm had an “ageing” customer base and dated stores, while its food halls were too expensive, with shoppers put off by “confusing” promotions. | After more than a decade of failed attempts to revive the high street giant, Rowe gave a stark assessment of the chain’s problems as it recorded a small increase in first-half profits. Its clothing arm had an “ageing” customer base and dated stores, while its food halls were too expensive, with shoppers put off by “confusing” promotions. |
| “Against the background of profound structural change in our industry, we are leaving no stone unturned,” said Rowe. “Every aspect of our ranges – how we trade, our supply chain and marketing – is undergoing scrutiny and change. We’re going bloody fast, trust me.” | “Against the background of profound structural change in our industry, we are leaving no stone unturned,” said Rowe. “Every aspect of our ranges – how we trade, our supply chain and marketing – is undergoing scrutiny and change. We’re going bloody fast, trust me.” |
| Rowe’s comments came as the group reported a 7.1% increase in pretax profits to £126.7m in the six months to 29 September. However, group sales declined 3.1% to £5bn as it shut 24 stores as part of a plan to axe 100 branches by 2022. M&S’s share price closed down 0.5% at 300p. | Rowe’s comments came as the group reported a 7.1% increase in pretax profits to £126.7m in the six months to 29 September. However, group sales declined 3.1% to £5bn as it shut 24 stores as part of a plan to axe 100 branches by 2022. M&S’s share price closed down 0.5% at 300p. |
| The profit figure was depressed by nearly £100m of one-off costs, around half of which related to the store closures. A further £11.1m covered a round of management job cuts as the retailer tackled a corporate culture that was “siloed, slow and hierarchical”. | The profit figure was depressed by nearly £100m of one-off costs, around half of which related to the store closures. A further £11.1m covered a round of management job cuts as the retailer tackled a corporate culture that was “siloed, slow and hierarchical”. |
| In the absence of obvious signs of recovery, Archie Norman, the turnaround expert who took over as chairman a year ago, insisted that M&S was a business where “things are really beginning to happen”, with the figures “roughly what we expected them to be”. | In the absence of obvious signs of recovery, Archie Norman, the turnaround expert who took over as chairman a year ago, insisted that M&S was a business where “things are really beginning to happen”, with the figures “roughly what we expected them to be”. |
| “A lot of it is behind the scenes, the blocking and tackling, the unglamorous things such as the supply chain … tackling a legacy that goes back decades,” said Norman. “If Steve [Rowe] was Donald Trump, he would probably be declaring today’s results a great personal victory, but that is not really quite the way we see it.” | “A lot of it is behind the scenes, the blocking and tackling, the unglamorous things such as the supply chain … tackling a legacy that goes back decades,” said Norman. “If Steve [Rowe] was Donald Trump, he would probably be declaring today’s results a great personal victory, but that is not really quite the way we see it.” |
| Gourmet Burger Kitchen: The upmarket burger chain wants to close 17 of its 85 restaurants via an insolvency process known as a company voluntary arrangement (CVA) | Gourmet Burger Kitchen: The upmarket burger chain wants to close 17 of its 85 restaurants via an insolvency process known as a company voluntary arrangement (CVA) |
| House of Fraser: The department store chain is expected to close about 12 stores after being bought out of administration by Mike Ashley. It had agreed a CVA under which 31 stores were to close, but this lapsed on administration. | House of Fraser: The department store chain is expected to close about 12 stores after being bought out of administration by Mike Ashley. It had agreed a CVA under which 31 stores were to close, but this lapsed on administration. |
| Homebase: The DIY chain is closing at least 42 stores after completing a CVA organised by new owner Hilco. The restructuring expert bought the DIY chain for £1 from Australia's Wesfarmers who botched an attempt to bring its Bunnings chain to the UK. | Homebase: The DIY chain is closing at least 42 stores after completing a CVA organised by new owner Hilco. The restructuring expert bought the DIY chain for £1 from Australia's Wesfarmers who botched an attempt to bring its Bunnings chain to the UK. |
| Poundworld: The discount retailer has closed all its 355 stores, with the loss of 5,100 jobs after falling into administration in June. | Poundworld: The discount retailer has closed all its 355 stores, with the loss of 5,100 jobs after falling into administration in June. |
| Cau: The owner of the Gaucho and Cau steakhouses fell into administration in July leading to the closure of all 22 Cau restaurants, with loss of 750 jobs. The groups lenders have since bought the 16 Gaucho outlets. | Cau: The owner of the Gaucho and Cau steakhouses fell into administration in July leading to the closure of all 22 Cau restaurants, with loss of 750 jobs. The groups lenders have since bought the 16 Gaucho outlets. |
| Mothercare: The chain is closing 60 of its 137 outlets after agreeing a CVA in May. Additional closures in July mean 900 jobs will be lost. | Mothercare: The chain is closing 60 of its 137 outlets after agreeing a CVA in May. Additional closures in July mean 900 jobs will be lost. |
| Carluccio's: The Italian chain secured a CVA to close 30 of its 99 restaurants in late May. | Carluccio's: The Italian chain secured a CVA to close 30 of its 99 restaurants in late May. |
| New Look: The chain is closing 85 stores in a restructuring plan announced earlier this year. Its chairman, Alistair McGeorge, said the future of a further 39 stores was in doubt as talks with landlords continued. | New Look: The chain is closing 85 stores in a restructuring plan announced earlier this year. Its chairman, Alistair McGeorge, said the future of a further 39 stores was in doubt as talks with landlords continued. |
| Carpetright: The retailer obtained a CVA in April to close 92 of its 409 UK stores in September with the loss of about 300 jobs. | Carpetright: The retailer obtained a CVA in April to close 92 of its 409 UK stores in September with the loss of about 300 jobs. |
| Prezzo: In March the Italian-themed restaurant group secured a CVA to close 94 of its 300 restaurants, with the loss of 500 jobs. Rent cuts were agreed on a further 57 locations. | Prezzo: In March the Italian-themed restaurant group secured a CVA to close 94 of its 300 restaurants, with the loss of 500 jobs. Rent cuts were agreed on a further 57 locations. |
| Jamie’s Italian: The chain closed six locations in 2017 and this year agreed a CVA to close about a third of its 35 loss-making outlets. | Jamie’s Italian: The chain closed six locations in 2017 and this year agreed a CVA to close about a third of its 35 loss-making outlets. |
| Byron: The upmarket burger chain is closing up to 20 of its 67 restaurants after a CVA agreed in January. | Byron: The upmarket burger chain is closing up to 20 of its 67 restaurants after a CVA agreed in January. |
| Debenhams: The under-pressure department store chain has said it could close up to 50 of its 165 stores stores and wants to get rid of space at 30 more by bringing in gyms and other services. | Debenhams: The under-pressure department store chain has said it could close up to 50 of its 165 stores stores and wants to get rid of space at 30 more by bringing in gyms and other services. |
| M&S: The high street stalwart wants to close 100 outlets – a third of its main stores by 2022 as part of a 'radical transformation' plan. | M&S: The high street stalwart wants to close 100 outlets – a third of its main stores by 2022 as part of a 'radical transformation' plan. |
| Clothing sales at stores open for more than one year were down 1.1% hindered by poor stock levels on popular styles. M&S recently hired the This Morning presenter Holly Willoughby to pick her clothing “must-haves” for the season, but some of the outfits she picked, such as a £49.50 leopard-print dress, sold out in several sizes within hours. | Clothing sales at stores open for more than one year were down 1.1% hindered by poor stock levels on popular styles. M&S recently hired the This Morning presenter Holly Willoughby to pick her clothing “must-haves” for the season, but some of the outfits she picked, such as a £49.50 leopard-print dress, sold out in several sizes within hours. |
| “We are letting customers down with availability,” said Rowe, who last year poached Jill McDonald from Halfords to lead the business. “We have some good products this season and the ranges are improving, but we are still in a position where we are buying too many [clothing] lines. The range is too broad and too shallow.” | “We are letting customers down with availability,” said Rowe, who last year poached Jill McDonald from Halfords to lead the business. “We have some good products this season and the ranges are improving, but we are still in a position where we are buying too many [clothing] lines. The range is too broad and too shallow.” |
| Next season M&S will buy more dresses and trousers in sizes eight through to 14, but fewer in a 16 and above, in a bid to improve stocks, he said. | Next season M&S will buy more dresses and trousers in sizes eight through to 14, but fewer in a 16 and above, in a bid to improve stocks, he said. |
| M&S did not rule out further store closures as about third of the retailer’s 1,029 stores date from before the second world war and some are located on ailing high streets. Rowe said: “We won’t pause at 100. We have got to make sure that M&S is relevant and fit for the future.” | M&S did not rule out further store closures as about third of the retailer’s 1,029 stores date from before the second world war and some are located on ailing high streets. Rowe said: “We won’t pause at 100. We have got to make sure that M&S is relevant and fit for the future.” |
| The retailer is also weighing up redevelopment options for another 80 of its older stores, some of which are freehold sites. | The retailer is also weighing up redevelopment options for another 80 of its older stores, some of which are freehold sites. |
| M&S’s previously reliable food business is also in trouble, with like-for-like sales down 2.9% in a competitive grocery market. Its food halls had become “excessively dependent” on short-term promotions and multi-buys such as the popular but unprofitable “Dine In” deal, Rowe said. | M&S’s previously reliable food business is also in trouble, with like-for-like sales down 2.9% in a competitive grocery market. Its food halls had become “excessively dependent” on short-term promotions and multi-buys such as the popular but unprofitable “Dine In” deal, Rowe said. |
| It wants more families to shop regularly in its supermarkets, and its new food boss, Stuart Machin, is introducing bigger packs while lowering the prices of popular foods such as whole chickens and hamburgers to make them more affordable. | It wants more families to shop regularly in its supermarkets, and its new food boss, Stuart Machin, is introducing bigger packs while lowering the prices of popular foods such as whole chickens and hamburgers to make them more affordable. |
| Tom Stevenson of Fidelity Personal Investing said: “Reading through M&S’s results is like taking a cold shower. The company is ruthlessly honest about the massive challenge it faces. Sales are still declining, in the context of which flat profits is not a bad result.” | Tom Stevenson of Fidelity Personal Investing said: “Reading through M&S’s results is like taking a cold shower. The company is ruthlessly honest about the massive challenge it faces. Sales are still declining, in the context of which flat profits is not a bad result.” |
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